Determinants of Effective External Audits for Independent Constitutional Commissions: A Case of Teacher’s Service Commission, Kenya

Authors

  • Ndereba Solomon Kiogora The Catholic University of Eastern Africa
  • Thomas Githui The Catholic University of Eastern Africa
  • John Omurwa The Catholic University of Eastern Africa

Abstract

Effective external auditing enables institutions to meet their financial obligations by instituting effective controls and risk management mechanism to obtain good governance. The current study established the determinants of effective external audits for independent commissions in Kenya: a case of Teachers Service Commission (TSC). The study was premised on three objectives; to determine the influence of audit technical competency, audits independence, and audit duration on effective external audits at TSC. The study adopted a descriptive research design. The study targeted all staff in the finance related departments at the Headquarter, Upper Hill-Nairobi totaling to 299. Questionnaire was distributed through purposive sampling method. The study used descriptive statistics and multiple regression analysis. Multicollinearity and heteroscedasticity were used to test the model’s reliability. The study established that technical competence, audit independence, audit duration, and ethical practices had positive relationship with effective external audits. The study concluded that external auditors adhered to quality standards, exercised good forensic skills, and provided reliable and verifiable reports. The study concluded that TSC ensured that auditors have free and unrestricted access to all financial operations and to the relevant staff at TSC. It concluded that auditors with longer duration possessed adequate experience with TSC systems. The study concluded that external auditors continuously complied with reporting procedures, made professional disclosures of auditing reports, upheld fair, and truthful representation of financial issues. The study recommends that the line Ministry should procure modern ICT external audit tools (software) that can promote efficient and faster audit service delivery including offering adequate compliance with expenditure management, fraud prevention, and detection measures. The study recommends that the commission should create conducive environment so that auditors can adequately plan their activities using auditing guidelines to ensure impartial reporting exercise free from conflict of interests.

Keywords: Effective External Audits, Technical Competency, Audits Independence, Audit Duration, and Ethical Practices.

Author Biographies

Ndereba Solomon Kiogora, The Catholic University of Eastern Africa

MBA Student, School of Business

Thomas Githui, The Catholic University of Eastern Africa

Lecturer

John Omurwa, The Catholic University of Eastern Africa

Lecturer

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Published

2021-09-20

How to Cite

Kiogora, N. S., Githui, T., & Omurwa, J. (2021). Determinants of Effective External Audits for Independent Constitutional Commissions: A Case of Teacher’s Service Commission, Kenya. Journal of Finance and Accounting, 5(2), 43–64. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-accounting/article/view/906

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